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annual season ticket with incidental private use

reporting requirements and BIK?

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Happy new year!

Director (and shareholder of Ltd Co) works for a few clients all based in London - she travels by train 4/5 days a week. The contracts are not within IR35 and are under 24 months so travel costs are allowable. She would like the company to buy an annual season ticket which would save about 10-15% in travel costs. 

Now there may be some incidental private use (occasional visit to London at the weekend).  What if any cost should be reported and how? 

I understand a season ticket paid for by an employer for ordinary commuting is taxable as earnings (less any amount made good). 

In this particular case shall the director reimburse the cost of any private journey (based on the cost of a standard ticket) to avoid a BIK?

Any pointers welcome!

Replies (4)

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By kiwilondon99
07th Jan 2018 14:51

buy the season ticket - as OP commented
loan [to employee to hopfully buy ?]

loan would by payroll deduction reimbursements etc , be non BIK ?

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Replying to kiwilondon99:
By Chipette
07th Jan 2018 17:06

Thanks - only issue is the initial cost (around 5k) is mainly business so if I treat it as loan to director how do I account for travel expenses deductions? Release the loan over 12 months and payroll private journeys?

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Replying to Portia Nina Levin:
By Chipette
08th Jan 2018 10:54

Ah thank you PNL just what I need- I have been looking through the EIM but missed that piece of information!

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